Professional Footballers Australia (PFA) Chief Executive Adam Vivian today issued the following statement in response to media reports suggesting that Melbourne Victory Football Club may have breached the A-League salary cap in 2013/14 by not counting loan fees paid to the overseas clubs of former Victory players Tom Rogic and James Troisi.
“The PFA and Football Federation Australia (FFA) have recently held extensive discussions regarding the interpretation of the A-League salary cap rules and the operation of the A-League Collective Bargaining Agreement 2008/09 – 2014/15 (CBA),” said Vivian.
“Unlike in previous seasons, FFA has in 2014/15 sought to count international player loan fees paid by A-League clubs to the salary cap. The PFA is strongly of the view that such an interpretation is not in the best interests of the A-League and is in breach of the CBA.
“FFA has given written assurances to the PFA that it has not made such a decision. Accordingly, the PFA has reserved its right to refer any such decision to independent arbitration under the CBA should one be made.
“The background to this matter is as follows:
> in 2010, FFA sought to amend the salary cap regulations in negotiations with the PFA so that player loan fees would count to the salary cap
> agreement was reached at that time only to include payments made by an A-League club to the player being loaned in the salary cap (or the minimum wage if that was a higher amount)
> in June 2013, FFA and the PFA varied the CBA. As part of that agreement, FFA agreed:
– to retain the same language in respect to Player loans
– not to review the salary cap rules before 30 June 2015
– not to apply the salary cap rules in a way which would reduce or dilute the collective or individual entitlements of the players
> FFA continued (correctly) to exclude player loan fees made by A-League clubs from the salary cap.
“Under FIFA regulations, a loan transfer is treated in the same manner as a permanent transfer. A transfer fee is a payment between the two clubs concerned.
“International player loans are an established part of professional football. They benefit all parties concerned – the loaning club preserves the transfer value of its player by continuing to pay his salary; the player receives needed game time; and the club to which the player is loaned receives the benefit of the player’s services.
“For Australian players, the loans system makes the A-League accessible at a time when they may need game time. This has greatly benefitted players, the A-League and, indeed, the Socceroos. Counting loan fees to the salary cap greatly restricts this avenue and certainly dilutes the financial entitlements of A-League players under the salary cap rules.”
For media enquiries contact PFA Media and Communications Manager Beau Busch on +61 (0) 432763485 or via beau@pfa.net.au.
